Midas Funds

Fund Strategies and Market Commentaries
As of July 21, 2016

Midas Fund seeks primarily capital appreciation and protection against inflation and, secondarily, current income. Midas Fund’s investment strategy focuses on investments in quality companies producing precious metals and other natural resources with a growth component.  Leading performance in the Fund’s portfolio recently have been the Fund’s holdings of Northern Dynasty Minerals Ltd., following an impressive capital raise, and Anglogold Ashanti Ltd ADR, which had previously fallen to depressed levels.  Shares of a leading producer of minerals, including salt, have lagged.   The Fund is currently invested in a global portfolio of primarily large and medium mining companies with promising exploration potential, expanding production profiles, increasing cash flow, and/or other special growth features. Midas Fund may seek to re-position its portfolio in the third quarter by adding to some current stockholdings and introducing new names into the portfolio.

Midas Magic seeks companies with strong operations showing superior returns on equity and assets with reasonable valuations.  In seeking its investment objective of capital appreciation, the Fund focuses primarily on large companies, with a broad orientation towards conservatively priced value stocks and selected growth issues. Relative to the S&P 500, the Fund’s portfolio currently is more weighted in financial services and to a lesser degree in consumer cyclical companies, and is underweight in economically sensitive and defensive industries.  Portfolio holdings of Inteliquent, Inc., a provider of wholesale voice and messaging interconnection services, and Transocean Ltd., a leading offshore oil drilling company, have recently contributed to the Fund’s returns.  Asset management companies detracted from Fund performance.  Anticipating further market volatility as the presidential election nears, the Fund currently anticipates reducing leverage, and in particular financial services companies, and moderating concentrated positions.

Cautionary Note Regarding Forward Looking Statements

This release may contain certain “forward looking statements” as defined under the U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will,” and similar expressions identify forward looking statements, which generally are not historical in nature. Forward looking statements are subject to certain risks and uncertainties that could cause actual results to materially differ from a Fund’s historical experience and its current expectations or projections indicated in any forward looking statements. These risks include, but are not limited to, equity securities risk, corporate bonds risk, credit risk, interest rate risk, leverage and borrowing risk, additional risks of certain securities in which a Fund invests, management risk, and other risks discussed in each Fund’s filings with the Securities and Exchange Commission. You should not place undue reliance on forward looking statements, which speak only as of the date they are made. Each Fund undertakes no obligation to update or revise any forward looking statements made herein. There is no assurance that each Fund’s investment objectives will be attained.